As you prepare your 2020 tax return, you should consider the guidelines set forth below.
If you are entitled to receive a benefit as a result of making a contribution to a qualified charitable organization, you can deduct
only the amount of your contribution that is more than the value of the benefit(s) you are entitled to receive.
Cougar Club reminds you that NEW tax laws were enacted effective January 1, 2018 and encourages you to
consult your tax advisors regarding how prior and current tax laws and regulations apply to you.
Cougar Club Tax Disclosure Statement
If your contribution to BYU Athletics exceeds $75 and entitles you to receive benefits in return, tax laws and regulations
require the Cougar Club to provide you with the following written disclosure statement.
The amount of your contribution that is deductible for federal income tax purposes is limited to the excess of money
(or in some but not all cases the fair market value of contributions other than money) you contribute to BYU Athletics
over and above the value of goods or services made available to you by the Cougar Club in connection with your contribution.
In exchange for your contribution you may have received, or been entitled to receive, one or more of the following benefits,
which have the following estimated fair market values:
- BYU Football/Basketball Poster (one time only; new Bronze members), $5
- Nike Hat (one time only; new Silver members), $10
- Embroidered Attaché Bag (one time only; new Golden members), $19
- BYU Blanket (one time only; new Platinum members), $12
- Bronze “Turning Point” Cougar Statue (one time only; new Legacy members), $375
- Game-worn BYU Football Helmet (one time only; new Legacy members), $250
- Legacy Watch (one time only; new Legacy members only), $285
- Press Almanacs for Football and Basketball, $8 each
- Free Club Luncheons, $5 per person, per luncheon (6 luncheons in 2019)
- Hall of Fame Banquet (Silver level and above), $40 per meal
- Annual Scholarship Dinner (Scholarship sponsors only), $20 per meal
In computing your charitable deduction for contributions to BYU Athletics, you should subtract the value of any benefits you received,
or had the right to receive, according to the benefits schedule set forth above, from the total amount you contributed.
In addition to tangible benefits, your contributions to BYU Athletics may have also allowed you to purchase tickets to
BYU Athletic events—either in priority locations, or at a prioritized time (selecting seats before the general public and/or other donors
who are at a lower priority status).
Cougar Club Members make contributions to BYU Athletics in order to be eligible to purchase tickets in priority seating areas
of LaVell Edwards Stadium and the Marriott Center. Amended IRC Section 170(l) provides in part as follows:
“No deduction shall be allowed … if … the taxpayer receives (directly or indirectly) as a result of paying such amount the
right to purchase tickets for seating at an athletic event in an athletic stadium of such institution.” Please consult your tax advisor
concerning the application of this change in the law to your contributions to BYU Athletics.
In 2020, a contribution of $60 entitled an athletic donor to qualify to purchase seating in most priority seating areas in
LaVell Edwards Stadium and the Marriott Center. Because of the lack of guidance from the IRS as to what, if any, portion of your
donation in excess of $60 is tax deductible, you should consult your tax advisor for direction in that regard.
BYU Athletics welcomes grants from private foundations and donor advised funds. However, federal law may impose significant
penalties on donors and fund administrators for grants from a private foundation or a donor advised fund (DAF) if a benefit is available to an individual in exchange for the grant.
You should also be aware that Cougar Club benefits for qualified distributions directly from IRAs may disqualify the distributions
from preferred tax treatment. Please consult your tax advisor(s) for specific information about the tax implications of Cougar Club
benefits. For additional information please visit www.cougarclub.com or contact the Cougar Club Office at 801-422-2583.
All Club Members are encouraged to consult with their tax advisors.